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Member Country Report of Thailand

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Member Country Report of Thailand CCOP-47AS/3-12 COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) 47th CCOP Annual Session 17-21 October 2010 Manado, Indonesia Member Country Report of Thailand Submitted by Thailand Delegation (For Agenda Item 3) COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) CCOP Building, 75/10 Rama VI Road, Phayathai, Ratchathewi, Bangkok 10400, Thailand Tel: +66 (0) 2644 5468, Fax: +66 (0) 2644 5429, E-mail: [email protected], Website: www.ccop.or.th ANNUAL MEMBER COUNTRY REPORT Country: THAILAND Period: 1 July 2009 – 30 June 2010 GEO-RESOURCES SECTOR 1. MINERAL PROGRAMME The year 2010 is a difficult year for many sectors, especially on the mining side. Mineral Resources continue to be important for the development of the country’s social and economic development. However, due to the concern for the environment and promotion of the principle of sustainable development, it is important that all mining projects carry out a proper BIA process, with selected mega projects also required to perform special HIA and SEAs. Furthermore, mining projects must be approved by the local communities and the relevant NGOs. The situation mentioned above is not necessarily bad, rather it gives many stakeholders opportunities to develop their ability, knowledge and performance, and use this to adjust their programs and management. This has caused many of the responsible offices to initiate green projects and, through their work, to evaluate their geological and mineral resources so as to sustain resources for the new generation to come. The work on Georesources is summarized below; 1.1 Summary During the reporting period (fiscal year 2010), the Department of Mineral Resources (DMR) has carried out the technical projects which are the “Mineral Exploration Program outside Legally Conserved/protected Areas” and “Mineral Zoning and Geological Resources Management”. 1.2 Annual Review of Technical Programmes / Activities 1.2.1 Project: Mineral exploration activity outside legally conserved/protected areas Established since 2007, the project is planned to be completed in 2010. It was implemented by subcontracting private exploration companies under the supervision of the DMR. Duration: 28 January 2010 – 4 October 2010. Objectives: to investigate mineral potential areas and mineral deposits for further development and to be used in the national management and planning of natural resources. Project Areas: The project working areas are “Kaeng Krachan” area covering parts of Phetchaburi and Prachuap Khirikhan Provinces, approximately 3,000 km2. The work has now been completed. (Figure 1) CCOP Member Country Report: THAILAND 1 Figure 1. Area “Kaeng Krachan” (Phetchaburi and Prachuap Khilikhan Province) 2 CCOP Member Country Report: THAILAND 1.2.2 Mineral Zoning and Geological Resources Management Project Background: Mineral resources development involves several stakeholders in society. Systematic management of mineral resources is needed in terms of effectiveness and fairness. Participation is needed from relevant stakeholders. This project was set up in 2006 to propose the management measures in each individual province for effective planning and management of its geological resources. Initially, DMR compiles various data, information, maps at 1:50,000 scale of the geology, mineral potential and mining license areas, natural parks, forests, wildlife reserves, other restricted areas and land-use conditions, conservative geological sites, national and local economic situations. The next step is to define the areas for potential development, considering the land-use conditions by laws and regulations. At this stage, the areas for mineral utilization have been divided into three groups namely; (1) preserved areas (e.g., national parks, forest parks, wildlife sanctuaries, area of no animal-hunting, pollution control areas and mangrove preserved zones) : mineral resources in these areas will be preserved and are the last-priority for utilization, (2) conserved areas (e.g., reformed land for agriculture, watershed areas class one, economic mangrove zone 1, forest zones restricted by laws, regulations, cabinet resolutions, mineral research survey areas designated by Mineral Act B.E. 1967, Section 6 bi): mineral resources are planned to be used in the near future, or at present with certain conditions, (3) development areas (e.g., economic mangrove zone 2, economic forest zones, industrial rock zones, mining license areas and mineral development areas designated by Mineral Act B.E. 1967, Section 6 quad): mineral resources in these areas have no law, regulation or public restrictions on development. Prioritization of the development areas of each mineral commodity is considered by economic, social and environmental factors. All the mineral zones in these three areas are also graded by their value. Measures and recommendations for effective mineral planning and management are then proposed in the preliminary report of each province. Finally, these reports are be sent to the relevant stakeholders for comments. Consultation meetings will be organized in every province prior to submission of the final report to the cabinet for approval. Executives and technical people as representatives of relevant agencies such as DMR, Department of Primary Industries and Mines, Office of Natural Resources Policy and Planning, Provincial Offices and Local Administrative Offices will be invited to join the consultation meetings. After four years (2006-2009), the project has been carried out in 38 provinces covering: Northern region; Chiang Mai, Chiang Rai, Lampang, Lamphun, Mae Hong Son, Nan, Phayao, Phrae, Uttaradit, Phetchabun and Phitsanulok. Central region; Nakhon Sawan, Saraburi, Lopburi, Phichit, Sukhothai and Uthaithani. Eastern region; Prachinburi, and Rayong Western region; Kanchanaburi, Tak, Prachaub Kiri Khan, Phetchaburi and Rachaburi Southern region; Chumphon, Surat Thani, Nakhon Si Thammarat, Phattalung and Trang Northeastern region; Loei, Kanlasin, Udonthani, Nong Khai, Nongbua Lampu, Khonkhean, Mahasalakham and Roi-Ed CCOP Member Country Report: THAILAND 3 During this year work was carried out in eight selected provinces in the southern part of the northeastern region, namely Chaiyabhum, Nakhon Ratchasima, Burirum, Surin, Sri Saket, Ubon-Ratchathani, Amnajaroen and Yasothon. 1.3 Proposed Future Activities The Mineral Exploration Program outside Legally protected Areas will also require similar work on different areas next year and the Mineral zoning and geological Resources Management Program will continue to next year in a number of selected provinces. Programme Contact Person: 1. Mr. Wudhikarn Sukserm Senior Geologist, Mineral Resource and Standard Division Bureau of Mineral resources Department of Mineral Resources Rama VI Road, Bangkok, THAILAND Tel: (66) 0 2621 9782, Fax: (66) 0 2621 9786 E-mail : [email protected] 2. Mr. Pracha Kuttikul Director of Spatial Planning Division Bureau of Geological Resources Policy and Planning Department of Mineral Resources Rama VI Road, Bangkok, THAILAND Tel: (66) 0 2621 9816, Fax: (66) 0 2621 9820-1 E-mail : [email protected] 2. ENERGY PROGRAMME 2.1 Summary Exploration activities include seismic surveys (2D and 3D) together with drilling of wells both onshore and offshore. The high crude price during the year 2006 - 2008 was the major driver of the aggressive E&P activities. The last two successful petroleum concession bidding rounds are evidence of success. The latest, 20th bidding round, was a record - breaking round. As of the end of September 2010, 25 blocks have been awarded. The crude oil production rate during July 2009 to June 2010 was 155,600 barrel per day (bbld), a slight decrease from last year’s average rate of 156,800 bbld per day. About 21% of crude oil production is from onshore oil fields including the production from a new onshore oil field which added up to another 2,500 bbld to the total production. Many newly awarded blocks are still in the exploration phase but exploration results indicated petroleum potential in many areas which can be developed into commercial production. The natural gas production rate was 4,400 MMscfd, an increase of 15% from last year’s average rate of 3,500 MMscfd. The mainstream of natural gas (96%) was produced from fields in the Gulf of Thailand, and the remainder was from onshore fields - 2 fields in the NE of Thailand (120 Mmcfd from the Sin Phu Horm and Nam Phong) and some associated gas of about 20 MMscfd from the Sirikit Field in the central plain basin. Condensate production slightly increased from last year at an approximate rate of 94,400 bbld in 2010 compared with 88,100 bbld in 2009. 4 CCOP Member Country Report: THAILAND However, the total amount of petroleum production in the Kingdom can only meet approximately 57% of the total country demands (Figure 2) though the indigenous supply increased about 22% from last year. As of 2009 year’s end, Thailand’s proved reserves (P1) as announced by the Department of Mineral Fuels (DMF) are 11 trillion cubic feet (Tcf) of natural gas, 255 million barrels (MMbbl) of condensate, and 180 MMbbl of crude oil. Concerning coal, the total coal consumption in 2010 is 34.87 million tons per year, a slight increase compared to that of last year of 34.38 million tons. The domestic coal production can supply only 17.93 million tons or 51.4% of the total demand. The amount of domestic coal production is almost the same as last year (17.95 million tons in 2009 and 17.93 million tons in 2010). Total imported coal also increased from 14.88 million tons in 2009 to 16.87 million tons in 2010. 2.2 Annual Review of Technical Programmes / Activities 2.2.1 Petroleum Concessions The results of the 20th Bidding Round (23rd May 2007 to 22nd May 2008) can be summarized as follows: A total of 65 blocks, 56 onshore and 9 offshore blocks in the Gulf of Thailand, were put to bid. The bids were very competitive compared to other rounds in the past. 37 concessionaires submitted 74 bidding forms for 52 blocks. By end of June 2010, 22 concessions for 25 blocks (14 onshore and 11 offshore blocks) had been awarded.
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